CryoPort Inc (CYRX)

[tigertrader]

Even if the company becomes profitable this year, which I guess is in the realm of possibilities, we still need to keep it real. More than 60% of the companies that went public in the last three decades no longer exist; and only 4% now have more than $1 billion in annual revenue.

If Cryoport could sustain profitability, they would still have to grow it year over year. Even the highly successful 4% have a relatively protracted growth curve.

First, there is entrepreneurial phase where an idea is transformed into a viable business model and growth is modest; the average length of this “runway” is five years. Second, an inflection point where revenue breaks out into an exponential trajectory.”

The odds against Cryoport developing into a strong growth company are not only staggering, but given Cryoport’s tendency for slow sales growth, it would not be linear, and still take many, many years.